North Carolina Down Payment Assistance Programs

Online Payments - These programs will be the Down Payment Assistance Program and the Mortgage Credit Certificate.

You purchase a house between December 1, 2009 and January 1, 2009 and if you qualify for one of these plans, you can ALSO qualify for the $8,000 tax credit just enacted into law.

First, who is a first-time Home Buyer? A First Time Home Buyer is someone who hasn't owned a house in the previous three years. That is the same qualifying definition for the $8,000 tax credit.

What is a Mortgage Credit Certificate and Who Qualifies?

All home owners can claim an itemized deduction. An MCC “reduces your tax liability based on a percentage of the mortgage interest that you pay.

Should you qualify for the MCC, it is possible to claim 20% of the interest you pay on your own mortgage as a credit on your own federal income taxes. You can save as much as .

Should you qualify for 2009, for the MCC, you may manage to combine this. This would reduce the tax liability of a buyer's .

Who qualifies for an MCC is based on the price of the house along with your income you're buying. Household income means the “gross income of the mortgagor and any other man anticipated to live in the residence who is 18 years of age or older.”

House price limitations that apply in Orange, Durham and Chatham Counties and the income are given below.

MCC Income Limits 1 Person $61,500 2 Individuals $61,500 3 Individuals $70,500 4 Persons $70,500

MCC Sales Price Limits New House $220,000 Existing Home $210,000

Who Qualifies for Down Payment Help?

Home buyers that need help with their down payment and closing prices may be able to get down payment assistance - or, in other words, interest-free, deferred second mortgages up to $8,000. The purchaser only needs to pay $1,000 of their own funds and the load would pay as much as .

This program has stricter income limits than the MCC program summarized above. Like the MCC program, it can be used along with all the new $8,000 tax credit on home purchases between January 1, 2009 and December 1, 2009. The down payment assistance, nevertheless, can not be applied along with the MCC. This really is an either or scenario.

House price limitations that apply in Durham Orange and Chatham Counties and the income are given below.

Down Payment Assistance Income Limitations

1 Man $39,950 2 Men $45,650 3 Men $51,350 4 Persons $57,050

Down Payment Assistance Sales Price Limits New Dwelling $210,000 Existing Home $210,000